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Officetel: The Wave Of New Investment Is Still Inadequate

Officetel

Officetel, a combination of offices and hotels for overnight stays, is a very hot investment channel for real estate tycoons.

Officetel has been rapidly entering the Vietnamese market since around 2015 and has received a great deal of interest from real estate investors. There is no denying the hotness and profitability of the officetel market, but this type of housing still has many problems, mainly related to legal issues.

Supply and demand increased, business officetel bloom

At present, officetel appears mainly in the two largest cities of our country, Hanoi and Ho Chi Minh City. Only a few years ago, when the number of projects is sporadic, the investment officetel is not popular, in 2017, the supply of this segment has increased dramatically. In Ho Chi Minh City alone, 40-50 projects have been launched and offered for sale such as Golden King, Vinhomes Greenbay, Richmond City Nguyen Xi, Thu Thiem Dragon… The project is completed in accordance with the progress, the official market Ho Chi Minh City will have about 8,000 new launches.

Officetel
Thu Thiem Dragon District 2 – one of Ho Chi Minh City’s outstanding service apartments

In Hanoi, this model of housing comes later and is also beginning to create the fever. Hanoi’s supply is forecast to reach 1,000 in 2017. Some typical projects are Charmington La Pointe, Vinhomes Central Park, Orchard Garden, RiverGate…

Investor officetel is said to be experiencing the present day because there are many small and medium enterprises born. The demand for a convenient office space can also be used as a place to rest overnight without the need to spend more and more moving. Meanwhile, the area of a flat falls from 35sqm to 80sqm with fully-designed bedrooms, toilets, cookers fully qualified to meet this demand.

Officetel
Officetel in Vinhomes Central Park of Hanoi

At present, officetel is mainly built in economically developed areas, concentrated in many businesses, either central or suburban. With the selling price of VND1.2 billion / unit or more (depending on the area and facilities), officetel apartments are enjoying a lot of buyers.

You can read more information at Vietnam Real Estate News

Attention difficulties to legal concerns

Considered to have many advantages in terms of use, the price is not expensive, high profitability, but the biggest shortcoming of officetel investment is very complicated legal procedures. In 2008, the officetel model in Vietnam was just beginning to be recognized by Ho Chi Minh City with the Ministry of Construction after the Bixteco project in Binh Thanh. However, by 2014, the Housing Law does not yet regulate the type of serviced apartments between housing and business that only one is selected as housing, and two are business.

Officetel
Officetel has many legal problems

Accordingly, the ownership of this apartment cannot be indefinite, long-term. This has led to difficulties in obtaining a certificate of land use rights for Officetel Apartments. Many investors have the intention to deploy officetel apartments, but due to concerns about the legality of the move to build commercial housing. This reduces the property market’s momentum and misses many investor opportunities.

In addition, quality management is loosely based on the fact that many apartments are offered for sale, but they do not really satisfy the criteria of a service apartment which causes many buyers to suffer disadvantage.

Explaining this, many opinions that because of new officetel appeared in Vietnam not so long so the law can not be amended in time. To overcome this complex problem takes time to thoroughly research, can not make the law then corrected again.

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Officetel: The Wave Of New Investment Is Still Inadequate
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